Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Lowe’s Cos. Inc., solvency ratios

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Debt Ratios
Debt to equity 15.16 9.79
Debt to equity (including operating lease liability) 18.24 12.04
Debt to capital 1.67 1.72 1.72 1.24 0.94 0.91
Debt to capital (including operating lease liability) 1.56 1.60 1.60 1.20 0.95 0.92
Debt to assets 0.82 0.86 0.78 0.55 0.47 0.49
Debt to assets (including operating lease liability) 0.92 0.96 0.87 0.66 0.56 0.60
Financial leverage 32.52 20.02
Coverage Ratios
Interest coverage 7.22 7.86 8.79 13.49 9.88 8.83
Fixed charge coverage 5.19 5.82 5.77 8.02 6.05 5.04

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Lowe’s Cos. Inc. debt to capital ratio improved from 2023 to 2024 and from 2024 to 2025.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Lowe’s Cos. Inc. debt to capital ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Lowe’s Cos. Inc. debt to assets ratio deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Lowe’s Cos. Inc. debt to assets ratio (including operating lease liability) deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Lowe’s Cos. Inc. interest coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Lowe’s Cos. Inc. fixed charge coverage ratio improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.

Debt to Equity

Lowe’s Cos. Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt 35,487 35,921 33,960 24,727 21,780 19,306
 
Shareholders’ equity (deficit) (14,231) (15,050) (14,254) (4,816) 1,437 1,972
Solvency Ratio
Debt to equity1 15.16 9.79
Benchmarks
Debt to Equity, Competitors2
Amazon.com Inc. 0.24 0.39 0.59 0.54 0.66
Home Depot Inc. 8.04 42.25 27.65 11.29
TJX Cos. Inc. 0.39 0.53 0.56 1.04 0.38
Debt to Equity, Sector
Consumer Discretionary Distribution & Retail 0.54 0.82 1.06 0.93 1.17
Debt to Equity, Industry
Consumer Discretionary 1.12 1.37 1.54 1.52 2.37

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 35,487 ÷ -14,231 =

2 Click competitor name to see calculations.


Debt to Equity (including Operating Lease Liability)

Lowe’s Cos. Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt 35,487 35,921 33,960 24,727 21,780 19,306
Current operating lease liabilities 563 487 522 636 541 501
Noncurrent operating lease liabilities 3,628 3,737 3,512 4,021 3,890 3,943
Total debt (including operating lease liability) 39,678 40,145 37,994 29,384 26,211 23,750
 
Shareholders’ equity (deficit) (14,231) (15,050) (14,254) (4,816) 1,437 1,972
Solvency Ratio
Debt to equity (including operating lease liability)1 18.24 12.04
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.52 0.77 1.06 0.96 1.08
Home Depot Inc. 9.38 50.04 32.24 13.16
TJX Cos. Inc. 1.72 2.00 2.08 2.66 1.93
Debt to Equity (including Operating Lease Liability), Sector
Consumer Discretionary Distribution & Retail 0.91 1.31 1.67 1.46 1.76
Debt to Equity (including Operating Lease Liability), Industry
Consumer Discretionary 1.42 1.72 1.94 1.90 2.84

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 39,678 ÷ -14,231 =

2 Click competitor name to see calculations.


Debt to Capital

Lowe’s Cos. Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt 35,487 35,921 33,960 24,727 21,780 19,306
Shareholders’ equity (deficit) (14,231) (15,050) (14,254) (4,816) 1,437 1,972
Total capital 21,256 20,871 19,706 19,911 23,217 21,278
Solvency Ratio
Debt to capital1 1.67 1.72 1.72 1.24 0.94 0.91
Benchmarks
Debt to Capital, Competitors2
Amazon.com Inc. 0.19 0.28 0.37 0.35 0.40
Home Depot Inc. 0.89 0.98 0.97 1.04 0.92 1.11
TJX Cos. Inc. 0.28 0.35 0.36 0.51 0.27
Debt to Capital, Sector
Consumer Discretionary Distribution & Retail 0.35 0.45 0.51 0.48 0.54
Debt to Capital, Industry
Consumer Discretionary 0.53 0.58 0.61 0.60 0.70

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 35,487 ÷ 21,256 = 1.67

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Lowe’s Cos. Inc. debt to capital ratio improved from 2023 to 2024 and from 2024 to 2025.

Debt to Capital (including Operating Lease Liability)

Lowe’s Cos. Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt 35,487 35,921 33,960 24,727 21,780 19,306
Current operating lease liabilities 563 487 522 636 541 501
Noncurrent operating lease liabilities 3,628 3,737 3,512 4,021 3,890 3,943
Total debt (including operating lease liability) 39,678 40,145 37,994 29,384 26,211 23,750
Shareholders’ equity (deficit) (14,231) (15,050) (14,254) (4,816) 1,437 1,972
Total capital (including operating lease liability) 25,447 25,095 23,740 24,568 27,648 25,722
Solvency Ratio
Debt to capital (including operating lease liability)1 1.56 1.60 1.60 1.20 0.95 0.92
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.34 0.43 0.51 0.49 0.52
Home Depot Inc. 0.90 0.98 0.97 1.04 0.93 1.09
TJX Cos. Inc. 0.63 0.67 0.68 0.73 0.66
Debt to Capital (including Operating Lease Liability), Sector
Consumer Discretionary Distribution & Retail 0.48 0.57 0.63 0.59 0.64
Debt to Capital (including Operating Lease Liability), Industry
Consumer Discretionary 0.59 0.63 0.66 0.65 0.74

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 39,678 ÷ 25,447 = 1.56

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Lowe’s Cos. Inc. debt to capital ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.

Debt to Assets

Lowe’s Cos. Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt 35,487 35,921 33,960 24,727 21,780 19,306
 
Total assets 43,102 41,795 43,708 44,640 46,735 39,471
Solvency Ratio
Debt to assets1 0.82 0.86 0.78 0.55 0.47 0.49
Benchmarks
Debt to Assets, Competitors2
Amazon.com Inc. 0.11 0.15 0.19 0.18 0.19
Home Depot Inc. 0.56 0.58 0.57 0.56 0.53 0.61
TJX Cos. Inc. 0.10 0.12 0.12 0.20 0.09
Debt to Assets, Sector
Consumer Discretionary Distribution & Retail 0.20 0.24 0.25 0.24 0.26
Debt to Assets, Industry
Consumer Discretionary 0.32 0.34 0.35 0.36 0.41

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 35,487 ÷ 43,102 = 0.82

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Lowe’s Cos. Inc. debt to assets ratio deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025.

Debt to Assets (including Operating Lease Liability)

Lowe’s Cos. Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Short-term borrowings 499 1,941
Current maturities of long-term debt 2,586 537 585 868 1,112 597
Long-term debt, excluding current maturities 32,901 35,384 32,876 23,859 20,668 16,768
Total debt 35,487 35,921 33,960 24,727 21,780 19,306
Current operating lease liabilities 563 487 522 636 541 501
Noncurrent operating lease liabilities 3,628 3,737 3,512 4,021 3,890 3,943
Total debt (including operating lease liability) 39,678 40,145 37,994 29,384 26,211 23,750
 
Total assets 43,102 41,795 43,708 44,640 46,735 39,471
Solvency Ratio
Debt to assets (including operating lease liability)1 0.92 0.96 0.87 0.66 0.56 0.60
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Amazon.com Inc. 0.24 0.29 0.33 0.31 0.31
Home Depot Inc. 0.65 0.68 0.66 0.64 0.62 0.73
TJX Cos. Inc. 0.42 0.45 0.44 0.50 0.47
Debt to Assets (including Operating Lease Liability), Sector
Consumer Discretionary Distribution & Retail 0.33 0.38 0.40 0.38 0.40
Debt to Assets (including Operating Lease Liability), Industry
Consumer Discretionary 0.41 0.43 0.44 0.45 0.50

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 39,678 ÷ 43,102 = 0.92

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Lowe’s Cos. Inc. debt to assets ratio (including operating lease liability) deteriorated from 2023 to 2024 but then slightly improved from 2024 to 2025.

Financial Leverage

Lowe’s Cos. Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Total assets 43,102 41,795 43,708 44,640 46,735 39,471
Shareholders’ equity (deficit) (14,231) (15,050) (14,254) (4,816) 1,437 1,972
Solvency Ratio
Financial leverage1 32.52 20.02
Benchmarks
Financial Leverage, Competitors2
Amazon.com Inc. 2.19 2.61 3.17 3.04 3.44
Home Depot Inc. 14.48 73.30 48.94 21.39
TJX Cos. Inc. 4.07 4.45 4.74 5.28 4.06
Financial Leverage, Sector
Consumer Discretionary Distribution & Retail 2.77 3.46 4.18 3.82 4.44
Financial Leverage, Industry
Consumer Discretionary 3.47 4.00 4.38 4.26 5.72

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 43,102 ÷ -14,231 =

2 Click competitor name to see calculations.


Interest Coverage

Lowe’s Cos. Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Net earnings 6,957 7,726 6,437 8,442 5,835 4,281
Add: Income tax expense 2,196 2,449 2,599 2,766 1,904 1,342
Add: Interest expense, net of amount capitalized 1,472 1,483 1,160 897 872 718
Earnings before interest and tax (EBIT) 10,625 11,658 10,196 12,105 8,611 6,341
Solvency Ratio
Interest coverage1 7.22 7.86 8.79 13.49 9.88 8.83
Benchmarks
Interest Coverage, Competitors2
Amazon.com Inc. 29.48 12.80 -1.51 22.09 15.69
Home Depot Inc. 9.36 11.25 14.90 17.14 13.60 13.25
TJX Cos. Inc. 76.53 56.19 37.80 1.46 75.57
Interest Coverage, Sector
Consumer Discretionary Distribution & Retail 18.69 13.19 7.64 15.91 14.50
Interest Coverage, Industry
Consumer Discretionary 14.99 12.27 9.45 13.29 7.81

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 10,625 ÷ 1,472 = 7.22

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Lowe’s Cos. Inc. interest coverage ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

Fixed Charge Coverage

Lowe’s Cos. Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Net earnings 6,957 7,726 6,437 8,442 5,835 4,281
Add: Income tax expense 2,196 2,449 2,599 2,766 1,904 1,342
Add: Interest expense, net of amount capitalized 1,472 1,483 1,160 897 872 718
Earnings before interest and tax (EBIT) 10,625 11,658 10,196 12,105 8,611 6,341
Add: Operating lease cost 712 630 734 699 659 674
Earnings before fixed charges and tax 11,337 12,288 10,930 12,804 9,270 7,015
 
Interest expense, net of amount capitalized 1,472 1,483 1,160 897 872 718
Operating lease cost 712 630 734 699 659 674
Fixed charges 2,184 2,113 1,894 1,596 1,531 1,392
Solvency Ratio
Fixed charge coverage1 5.19 5.82 5.77 8.02 6.05 5.04
Benchmarks
Fixed Charge Coverage, Competitors2
Amazon.com Inc. 5.77 3.73 0.47 5.24 4.63
Home Depot Inc. 5.87 7.03 9.07 9.94 8.97 8.26
TJX Cos. Inc. 3.85 3.31 3.17 1.04 3.43
Fixed Charge Coverage, Sector
Consumer Discretionary Distribution & Retail 5.78 4.61 2.82 5.29 5.11
Fixed Charge Coverage, Industry
Consumer Discretionary 5.96 4.98 3.70 5.63 3.72

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 11,337 ÷ 2,184 = 5.19

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Lowe’s Cos. Inc. fixed charge coverage ratio improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025.